MCA Notifies Sections regarding Constitution of National Financial Reporting Authority (NFRA)

Mar 22, 2018 | by Avantis RegTech Legal Research Team

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The Ministry of Corporate Affairs (MCA) has issued a notification to bring sub-section (3) and (11) of Section 132 which describes the constitution of National Financial Reporting Authority (NFRA). MCA has put March 21, 2018 as effective date for these section to come into force. Brief details of these sub-sections are as under:

 

Section 132(3):

The National Financial Reporting Authority shall consist of a chairperson, who shall be a person of eminence and having expertise in accountancy, auditing, finance or law to be appointed by the Central Government and such other members not exceeding fifteen consisting of part-time and full-time members as may be prescribed:

Provided that the terms and conditions and the manner of appointment of the chairperson and members shall be such as may be prescribed:

Provided further that the chairperson and members shall make a declaration to the Central Government in the prescribed form regarding no conflict of interest or lack of independence in respect of his or their appointment:

Provided also that the chairperson and members, who are in full-time employment with National Financial Reporting Authority shall not be associated with any audit firm (including related consultancy firms) during the course of their appointment and two years after ceasing to hold such appointment.

 

Section 132(11):

The Central Government may appoint a secretary and such other employees as it may consider necessary for the efficient performance of functions by the National Financial Reporting Authority under this Act and the terms and conditions of service of the secretary and employees shall be such as may be prescribed.

 

URL: http://www.mca.gov.in/Ministry/pdf/commencementNotification2103_21032018.pdf


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